U.S. Hospital Deals Holding Steady

Seven months into 2017, hospital mergers and acquisitions in the United States are slow and on the smaller side. Even with Community Health System’s (NYSE: CYH) ongoing divestiture announcements, just 51 transactions have been announced through August 1. In all of 2016, 84 transactions for U.S. hospitals were announced. With five months to go, that’s a target this sector could meet or even surpass, but that’s not a very high bar to reach, considering there were 96 deals for U.S. hospitals announced in 2015. Spending on this year’s hospital deals has been anemic. Through August 1, almost $2.3 billion has been spent on mostly private hospital transactions, with the largest, at $1.4 billion,... Read More »

Have the Daughters of Charity Made a Deal?

Don’t hold your breath, but the Daughters of Charity Health System (DCHS) in Los Altos, California may have found a buyer. Sure, the Board chose BlueMountain Capital Management LLC last July, in favor of its well-publicized $250 million offer to keep the struggling system afloat. And we do mean struggling. Through June 30, 2014, DCHS’s five acute-care hospitals made nearly $1.2 billion in total operating income, but a combined loss of $64.0 million in EBITDA. Don’t forget that for-profit hospital company Prime Healthcare Services walked away from its $849 million offer for Daughters back in March, accusing the state’s Attorney General, Kamala Harris, of imposing... Read More »